Track Your Losses to Minimize Gambling Taxes

While many people know that they need to report gambling winnings on their tax returns, they do not know that you can also reduce your gambling taxes by deducting your losses. The 1040 has a space that allows you to claim losses that are no greater than your total winnings for the year. In order to directly report your losses, you need to keep a track of everything you do for the year.

Tracking your Losses

The best way to keep a close eye on your losses is to keep proper records by completing a form every time you play. You can keep a diary, either on paper or online, to detail all of your games. You should also keep information, such as ticket stubs, entrance records and evidence about you participation in the games.

Evidence of your Losses

You will need to complete a W-2G form to declare your winnings and collect your credit card records and payment receipts. If you have been playing online, you should keep a record of the website, the time and date of your game and any evidence or payment receipts that you have. If you are playing table games, then you should record the number of the table and any credit card slips that show your losses.

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